Per Man Hour Invested and the summer

[robc]

ATCon has a theory about inceasing production during the summer months, when it's needed the most, using a forumla called Per Man Hour Invested. I know we've discussed this idea in the past on the board, but I am wondering if any of you have direct experiences with proposing such a system to technicians.

What were the possible pitfalls to watch out for? What were some unexpected results?

(FYI - per man hour invested is used as an incentive to get more production out of your shop. It basically says that you can afford to give up quite a bit of gross to the technician if they are increasingly productive. For example, a shop open 40-hours makes more money paying a technician $18/hour if he is 135% efficient than a technician $13/hour who is only 100% efficient. This is different than the pay plan where as a technician reaches a certain production level he gets more per hour. In per man hour invested the tech first must produce at a level and then have his pay assigned for the following pay period based on that production.)



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** Rob, Editor WD&S **
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robc@dealersedge.com